Jon Gorvett
Once a premium destination for overseas investors, Turkey’s power sector has recently been struggling with the impact of lower-than-expected growth rates, partial market liberalisation and fixed, long-term natural gas contracts. Power generation firms face further stress as the economic impact of the pandemic bites. Efforts to arrange a new debt restructuring deal have been delayed by the virus and wider economic woes, casting uncertainty over future demand. However, the sector retains some high-grade assets, however, which may attract future investor interest.
Ratings downgrades in Kuwait, Oman add to growing GCC economic concerns
**Written and disseminated to select contacts on April 1**
Ratings downgrades in Kuwait and Oman, prompted by plunging oil revenues, widening deficits and increased borrowing needs, will make accessing global funding more expensive and difficult, especially for regional economic laggard Oman. Although important, ratings do not always reflect the full picture, nor gauge investor appetite for Gulf risk once market conditions improve.
Rachna Uppal | Senior Analyst | r.uppal@castlereagh.net
